OPEC is not planning to “open the taps” and flood the market, Saudi energy minister Khalid Al-Falih said on Monday, adding that oil inventories are not expected to grow much over the next four months.
The minister’s remarks came following a meeting with US Secretary of Energy Rick Perry in Riyadh.
OPEC and a group of non-member oil producers last week agreed to extend a supply cut pact until the end of 2018. The pact, which includes 24 countries, cuts 1.8 million barrels a day (bpd) from the market to ease oversupply and bolster prices.
According to Wall Street Journal, Al-Falih said there will be no change of OPEC, non-OPEC policy in second half of 2018 “even if something unexpected takes place”.
He added that the picture in the market will become clearer in June, as producers start considering their course of action for 2019.
Saudi Arabia has a spare oil capacity of two million barrels per day, Al-Falih said, noting there will be plenty of supply to respond to any need in the market.
Saudi Arabia’s Crown Prince Mohammed bin Salman met with Perry on Sunday, and discussed strategic partnership opportunities between the two countries in various fields, especially in energy, environment and industry, according to a statement on the official Saudi Press Agency (SPA).
The Kingdom has signed cooperation agreements with the US for carbon management, oil, gas, nuclear and renewables, it was reported.
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